Sales Cost of goods sold Gross mergin Selling and administrative expenses: Selling expenses Administrative expenses Operating income Sales Variable expenses Cost of goods sold Administrative expenses Skis sell, on average, for $1.500 per pair Variable selling expenses are $178 per pair of skis sold. The remaining selling expenses fixed. The administrative expenses are 20% variable and 80% fixed. The company purchases its skis from several suppliers at an average cost of $900 per pair. Crazy Canucks Income Statement-Crazy Canucks For the Month Ended January 31 Selling expenses Contribution margin Fixed expenses Income Statement-Crazy Canucks for the Month Ended January 311 Required: 1. Prepare an income statement for the month using the contribution approach Administrative expenses Selling expenses Operating income $205,200 $ 342,000 per pair $ $ $68,400 22,800 205,200 136,000 $ 342,000 205,200 136,800 136,800 91,200 $ 45,000 2. For every pair of skis sold during January, what was the contribution toward covering fixed expenses and toward earning profits? Contribution margin 3. What would the total contribution margin be in a month where 178 pairs of skis were sold?
Sales Cost of goods sold Gross mergin Selling and administrative expenses: Selling expenses Administrative expenses Operating income Sales Variable expenses Cost of goods sold Administrative expenses Skis sell, on average, for $1.500 per pair Variable selling expenses are $178 per pair of skis sold. The remaining selling expenses fixed. The administrative expenses are 20% variable and 80% fixed. The company purchases its skis from several suppliers at an average cost of $900 per pair. Crazy Canucks Income Statement-Crazy Canucks For the Month Ended January 31 Selling expenses Contribution margin Fixed expenses Income Statement-Crazy Canucks for the Month Ended January 311 Required: 1. Prepare an income statement for the month using the contribution approach Administrative expenses Selling expenses Operating income $205,200 $ 342,000 per pair $ $ $68,400 22,800 205,200 136,000 $ 342,000 205,200 136,800 136,800 91,200 $ 45,000 2. For every pair of skis sold during January, what was the contribution toward covering fixed expenses and toward earning profits? Contribution margin 3. What would the total contribution margin be in a month where 178 pairs of skis were sold?
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4PB: West Island distributes a single product. The companys sales and expenses for the month of June are...
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Please do not give solution in image format thanku
![Sales
Cost of goods sold)
Gross margin
Selling and administrative expenses:
Selling expenses
Administrative expenses
Operating income
Sales
Variable expenses
Skis sell, on average, for $1,500 per pair Variable selling expenses are $178 per pair of skis sold. The remaining selling expenses
fixed. The administrative expenses are 20% variable and 80% fixed. The company purchases its skis from several suppliers at an
average cost of $900 per pair.
Crazy Canucks.
Income Statement-Crazy Canucks
For the Month Ended January 31
Cost of goods sold
Administrative expenses
Required:
1. Prepare an income statement for the month using the contribution approach.
Selling expenses
Contribution margin
Fixed expenses
Administrative expenses
Income Statement-Crazy Canucks
For the Honth Ended January 31
Selling expenses
Operating income
Contribution margin
ELITE $ 205,200
Total contribution margin)
S 342,000
$
205,200
136,800
1111
$
$68,400
22.800
$ 342,000
205,200
136,800
0
136,800
91,200
$ 45,600
2. For every pair of skis sold during January, what was the contribution toward covering fixed expenses and toward earning profits?
per pair
3. What would the total contribution margin be in a month where 178 paus of skis were sold?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0eb62f96-0a2c-4fad-943d-917102a9d0e7%2F480c66a1-9371-4231-88dc-2f772f0c9282%2Fmomuwyu_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sales
Cost of goods sold)
Gross margin
Selling and administrative expenses:
Selling expenses
Administrative expenses
Operating income
Sales
Variable expenses
Skis sell, on average, for $1,500 per pair Variable selling expenses are $178 per pair of skis sold. The remaining selling expenses
fixed. The administrative expenses are 20% variable and 80% fixed. The company purchases its skis from several suppliers at an
average cost of $900 per pair.
Crazy Canucks.
Income Statement-Crazy Canucks
For the Month Ended January 31
Cost of goods sold
Administrative expenses
Required:
1. Prepare an income statement for the month using the contribution approach.
Selling expenses
Contribution margin
Fixed expenses
Administrative expenses
Income Statement-Crazy Canucks
For the Honth Ended January 31
Selling expenses
Operating income
Contribution margin
ELITE $ 205,200
Total contribution margin)
S 342,000
$
205,200
136,800
1111
$
$68,400
22.800
$ 342,000
205,200
136,800
0
136,800
91,200
$ 45,600
2. For every pair of skis sold during January, what was the contribution toward covering fixed expenses and toward earning profits?
per pair
3. What would the total contribution margin be in a month where 178 paus of skis were sold?
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